#taxpreparers

The new year had barely begun, and Sam, a seasoned certified tax preparer, was already feeling the pressure. His tax preparation methods had been reliable, tried, and tested for the past decade. But as he scrolled through the endless IRS updates and digital tax tools flooding the market, it became clear - the scenario had shifted. Clients now expected smooth, tech-driven services, and the competition was fierce. Sam knew he had two options – either adapt or fall behind. That year, Sam didn’t just survive the tax season - he excelled, mastering the new age of tax preparation in 2025. 

In this age of smart tax technology, where precision and customer experience blend, tax preparers like Sam must adopt smarter, innovative practices. Here are 10 best practices every certified tax preparer should follow in 2025 to keep ahead of industry trends. 

1. Adopt AI-Powered Tax Tools - Automation has revolutionized tax preparation. Advanced AI tools can now perform error checks, predict refunds, and generate optimized tax strategies. In 2025, using tools like TurboTax AI, TaxDome AI, or personalized software reduces human error while increasing efficiency - a game-changer for both speed and accuracy.  

2. Access to Client Portals for 24X7 – Nowadays, clients demand convenience. Solutions like secure client portals allow your customers to upload documents, check tax statuses, and communicate with you anytime, anywhere. Providing real-time updates builds trust and saves you from chasing paperwork. A client portal reduces back-and-forth emails and ensures smoother workflows. 

3. Use of Blockchain for Secure Tax Records - Blockchain is no longer just for cryptocurrencies. In 2025, savvy tax preparers are using blockchain to ensure secure, transparent, and tamper-proof tax records. It reduces fraud risks and enhances the credibility of your services.  

4. Specialize in Niche Tax Solutions - Generalized tax preparation is fading. Choose a niche, such as high-net-worth individuals, small enterprises, bitcoin traders, or freelancers, to make your brand stand out. Being specialized makes you an expert and allows you to charge more for customized services. 

5. Offer Subscription-Based Tax Services - Rather than seasonal engagement, adopt a subscription model where clients pay monthly for year-round tax advisory, planning, and filing services. As a result, your attention is diverted from yearly transactions to continuing client connections. 

6. Cyber Security Compliance - Since tax preparers handle sensitive information, they are the prime targets of hackers. By 2025, implementing end-to-end encryption, multi-factor authentication, or adhering to IRS or GDPR should be in place. 

7. Data Analytics for Tax Strategy - From compliance to advisory, use data analytics tools to identify patterns, recommend saving opportunities, and get a better understanding of tax liabilities. Tools like Tableau or Power BI allow tax preparers to deliver actionable insights for smarter financial decisions. 

8. Automate Client Communication with Chatbots - Chatbots transform client interactions by providing quick, 24x7 responses to common questions. Implementing tax-specific chatbots reduces workload and ensures clients feel supported throughout the tax season.  

9. Stay Updated with Evolving Tax Laws Using Real-Time Alerts - Tax regulations are more dynamic than ever. Tools like IRS alerts, AI-driven compliance monitors, and tax law aggregators ensure you stay informed about changes as they happen - giving you a competitive edge.  

10. Enhance Your Digital Presence to Attract New Clients - Word-of-mouth recommendations won't be sufficient in 2025. High-quality leads can be attracted via a professional website that is optimized for SEO keywords like "hire tax preparers" or "certified tax preparer," combined with active social media and customer testimonials. 

Summing Up 

As Sam discovered, excelling in 2025 means embracing innovation while staying focused on providing value to clients. By implementing these innovative strategies, tax preparers can establish themselves as essential partners in their clients’ financial success.  

What tax filers and preparers need to know for 2025

Changing tax laws can be confusing during the tax season. It is best to hire a professional tax preparer.

According to IRS, half of the taxpayers hire a professional tax preparer. However, hiring a tax professional is not an easy task. It would help if you were careful before selecting your tax preparer, trusting him or her with your most personal information. 

So asking these questions beforehand would be worth the time and effort to ensure that someone with the desired experience and skill level is hired. 

If you and your spouse divorced or legally separated in the year 2016, take a look at some key financial decisions listed out below that you will need to consider when filing your income tax return.

Alimony – money paid to a spouse for their living expenses, including education, health insurance, life insurance, property taxes, and mortgage payments. IF YOU PAY ALIMONY, it is tax deductible as long it is a cash form, a result of legal separation agreement, receiver of alimony does not live with you, and the payments are not designated as child support. IF YOU RECEIVE ALIMONY, you must pay taxes on all payments received.

Child Support – If you pay or receive child support, it is NOT tax deductible and is NOT a taxable income source.

Dependency Exemptions – A qualifying child or relative may be claimed as a dependent on ONE spouse’s tax return. The child must be under 19 years of age, have a legal relationship to you, and must live in the same home as you for more than half the tax year. The relative must be related to you or a person in the household for the entire tax year, cannot have a gross income that exceeds the exemption amount, and you must provide over half of their total support for the year.

Attorney Fees – Legal fees paid are only tax deductible if they are related to the collection of your taxable alimony or an income-producing property.

For more information on divorce and your taxes, be sure to schedule an appointment with one of our enrolled agents by calling 770-564-3535.